MANILA, Philippines – An abaca business project that will benefit over 900 indigenous families has been selected by the Australian Government’s Enterprise Challenge Fund (ECF) as the first grant awardee from the Philippines to receive a P13-million funding.
The Australian Embassy in Manila announced that the ECF will provide a grant of about P13 million (A$346,130) to Cagayan de Oro Handmade Paper Crafts Inc.
The business aims to improve the supply of abaca tow raw material and expand the existing 150 hectares of abaca farmlands in Malitbog, Bukidnon and Claveria, Misamis Oriental.
The embassy said the grant is the biggest so far approved by ECF among participating countries in the Asia-Pacific region.
Many farmers from the Higaunon tribe grow abaca in remote areas but cannot sell their products due to poor transportation.
This project aims to help those farmers build links between their villages and Cagayan de Oro City.
“This project demonstrates how Australian aid to the Philippines is working in a practical way to build sustainable economic opportunities for Filipinos,” Australian Ambassador Rod Smith said.
“Aside from providing a ready market for the abaca tow, the farmers will also be trained on value-adding activities such as pulping, weaving, natural dye production, and accessory making. The project also aims to link the farmers with market for their finished product both here and abroad,” Smith added.
Funded by the Australian Agency for International Development (AusAID), the ECF provides businesses with grants ranging from P3.8 million (A$100,000) to P57 million (A$1.5 million) to support sound business ideas that also have a positive impact on poverty reduction.
By providing up to half of the project’s costs, the ECF helps otherwise profitable business projects overcome external obstacles and share some of the risk.
ECF operates in Cambodia, East Timor, Fiji, Lao PDR, Papua New Guinea, southern Philippines, Solomon Islands, Vanuatu and selected provinces of Indonesia.
The Fund is managed by Coffey International Development. – Pia Lee-Brago